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A Major Gap Between Official and Actual Exchange Rates: Citizens Demand Regulation
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Recipients of foreign remittances face clear exploitation amid a multi-tiered exchange rate system, exacerbating the financial crisis for many Syrian families
Currency exchange institutions hold a monopoly over Syrians' savings and the foreign currency sent by their relatives abroad, enforcing exchange rates that they dictate.
Notably, the exchange rate applied by these institutions is significantly lower than the rate set by the Syrian Central Bank and is not even comparable to the parallel market rate. This allows exchange firms to seize the hard-earned money of Syrians and their remittances while the state stands by, watching an overt act of financial exploitation without investigating those responsible or ensuring justice for those affected.
Khaled, overwhelmed with frustration, accuses exchange companies of stripping him of nearly 3,000 Syrian pounds per dollar sent to him by his brother from Lebanon.
Speaking to RT, he openly labels these companies as "thieves" while also holding the state accountable for enabling them to plunder Syrians' wealth in an "unjustifiable and irrational" manner. As he puts it, "This issue carries an explicit accusation of state negligence and an implicit one of complicity."
Similarly, Bilal tells our platform that the remittances he receives from his brother in the UAE are his family's only source of income after he, like many others, lost his job in both the public and private sectors.
Bilal laments his misfortune, as he is forced to exchange dollars at 9,000 Syrian pounds per dollar, while the Central Bank has set the official rate at over 13,000 pounds. Meanwhile, in the parallel market, the rate exceeds 10,000 pounds.
This situation compels him to ask the pressing question: "Why doesn’t the state intervene and force exchange companies to convert dollars at the Central Bank rate or at least slightly below it?"
Mahmoud, who went to an exchange office to receive $200 sent by his brother from Germany, believes financial transactions should be handled with the same professionalism and courtesy found in banks. However, he quickly realized that this was not the case. Exchange companies know they don’t need to appease their customers because people have no choice but to comply with their pricing. In his words, "These are thieves operating with the state’s blessing to rob Syrians of their remittances and savings."
Mahmoud asks with frustration: "Why doesn’t the state mandate that exchange companies pay out remittances in dollars instead of allowing them to manipulate exchange rates for massive, unjustified profits?"
On the other hand, economic expert Mohannad Ghanem argues that the core issue lies in allowing anyone to trade foreign currency without a license. Speaking to RT, he stresses the need to compel all exchange companies to sell dollars directly to the Central Bank. He highlights that the government's failure to enforce this rule deprives the state of a substantial and rightful revenue share—one that these unregulated businesses are reaping unchecked.
Ghanem further explains that trading dollars in the Syrian market has turned into a profession for the unlicensed and unregulated, despite it being a practice that should be strictly controlled by licensed banks.
He insists that the Central Bank must step in to force exchange companies to comply with its set rates, or else it risks being complicit in the depletion of citizens' savings, transferring their wealth into the hands of the affluent.
Ghanem concludes by noting that the disappearance of Syrian pounds from people’s hands—due to months of unpaid salaries and widespread job losses—has pushed those with foreign currency savings to spend cautiously. Many are being forced to sell their dollars at far below market value, fearing further devaluation. However, a growing sentiment among the public suggests that the dollar will soon surge again—after Syrians have already emptied their reserves.
This concern is reinforced by the behavior of exchange institutions and the strict withdrawal limits imposed by the Central Bank. While citizens are allowed to deposit dollars at an official rate of 13,000 pounds, their access to withdrawals has been heavily restricted under the pretext of liquidity shortages. This means that retrieving one's own funds becomes a lengthy ordeal. In contrast, selling dollars directly in the parallel market offers immediate cash but at a devastating loss—leaving Syrians stuck between two painful choices.
